Job creation and capital works projects will form the cornerstone of this year’s state budget, West Australian Premier Colin Barnett says.

The WA government on Thursday will deliver its first budget since elected last year.

“It will be responsible and I think you will see it supports maintaining jobs and supports the future development of this state,” Mr Barnett said on Wednesday.

“And you will see not only that, but a number of measures designed to maintain jobs, particularly in the small- to medium-size business sector.”

The government is under pressure to maintain a surplus after Mr Barnett’s commitment to deliver surpluses in the next two budgets.

While seeking to maintain the state’s AAA credit rating, the government is also facing demands from WA’s peak business lobby to deliver on an election promise to cut taxes by $250 million.

Mr Barnett said the state’s budget and finances would need some “rejigging” to match a $263 million federal government commitment in Wednesday’s federal budget to put the Perth rail line and bus station underground.

“Yes, we will have to have some rejigging of the state budget and finances because we originally sought 50/50 funding just to sink the rail line,” Mr Barnett said.

“The commonwealth’s taken up the point. It was an issue I discussed with the prime minister in Perth about three weeks ago and I just made the point to him quite informally that if we’re going to sink the rail line it would actually be commonsense to sink the bus station too …

“He’s obviously taken it on board so we’re going to make sure that happens.”

The federal government also pledged $339 million for a deepwater port at Oakajee, in the state’s midwest, which will boost iron ore exports in the region.

The WA government had already spent about $20 million on Oakajee and private proponents were now spending $100 million on the design of the deepwater port and rail line, he said.Continued…